Rehab Needs

Assess the rehab needs of public housing projects by creating a chart of estimated rehab needs—

Divide all public housing properties into groups based on the amount of estimated rehab that will be needed over the next 20 years: Minimal, Mid-Level, Most Rehab, Replace—and current Mixed-Finance properties, which involve a different strategy. As RAD provides a 20-year Section 8 contract, HUD will review the extent of needs over the initial HAP contract period.

If a project(s) scores well for 9% LIHTC awards. Schedule out 9% LIHTC applications according to criteria in a state’s LIHTC Qualified Allocation Plan. Do not count on more than one 9% LIHTC award per year.

If a project(s) doesn’t score well for 9% LIHTCs

Consider Transfer of Assistance: Can the RAD income stream be transferred to another site owned by a PHA or a nonprofit partner that can potentially meet Site and Neighborhood Standards?

Consider 4% LIHTC/Tax-Exempt Bond financing, including a “short bond” structure that is taken out by other sources of debt and/or investor equity after construction. Possibly combine 4%/Tax-Exempt bond projects into a single bond offering to save transaction costs.

Identify other sources of “soft financing” that might be available (CDBD, HOME, National Housing Trust Fund, Local Trust Funds, other).

“Minimal Rehab” needed (less than $20K/unit)

Assess of the PHA have sufficient resources to self- finance needed repairs?

Identify other sources of “soft financing” that might be available (CDBD, HOME, National Housing Trust Fund, Local Trust Funds, other).